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    Global Technology's weighted average cost of capital.

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    Global Technology's capital structure is as follows:

    DEBT - 60%
    Preferred Stock - 5
    Common Equity - 35

    The after tax cost of debt is 6.5 percent; the cost of preferred stock is 10 percent; and the cost of common equity (in the form of retained earnings) is 13.5 percent.
    Calculate Global Technology's weighted average cost of capital.

    © BrainMass Inc. brainmass.com October 9, 2019, 10:26 pm ad1c9bdddf
    https://brainmass.com/economics/technology/220080

    Solution Preview

    Global Technology's weighted average cost of capital= Sum of the Product of weights and cost of ...

    Solution Summary

    This provides the steps to compute the Global Technology's weighted average cost of capital.

    $2.19